part ii - contract clauses

DE-AC05-00OR22725
Modification No. 341
Section I
(2) The ES&H performance requirements of this contract are set forth in its
ES&H terms and conditions, including the DOE approved contractor ISMS or
similar document. Financial incentives for timely mission accomplishment or
cost effectiveness shall never compromise or impede full and effective
implementation of the ISMS and full ES&H compliance.
(3) The performance requirements of this contract relating to the safeguarding of
Restricted Data and other classified information are set forth in the clauses of
this contract entitled, “Security” and “Laws, Regulations, and DOE
Directives,” as well as in other terms and conditions.
(4) If the Contractor does not meet the performance requirements of this contract
relating to ES&H or to the safeguarding of Restricted Data and other
classified information during any performance evaluation period established
under the contract pursuant to the clause of this contract entitled, ``Total
Available Fee: Base Fee Amount and Performance Fee Amount,'' otherwise
earned fee, fixed fee, profit or share of cost savings may be unilaterally
reduced by the contracting officer.
(b)
Reduction Amount.
(1) The amount of earned fee, fixed fee, profit, or share of cost savings that may
be unilaterally reduced will be determined by the severity of the performance
failure pursuant to the degrees specified in paragraphs (c) and (d) of this
clause.
(2) If a reduction of earned fee, fixed fee, profit, or share of cost savings is
warranted, unless mitigating factors apply, such reduction shall not be less
than 26% nor greater than 100% of the amount of earned fee, fixed fee, profit,
or the Contractor's share of cost savings for a first degree performance failure,
not less than 11% nor greater than 25% for a second degree performance
failure, and up to 10% for a third degree performance failure.
(3) In determining the amount of the reduction and the applicability of mitigating
factors, the contracting officer must consider the Contractor’s overall
performance in meeting the ES&H or security requirements of the contract.
Such consideration must include performance against any site specific
performance criteria/requirements that provide additional definition, guidance
for the amount of reduction, or guidance for the applicability of mitigating
factors. In all cases, the contracting officer must consider mitigating factors
that may warrant a reduction below the applicable range (see 48 CFR
970.1504-1-2). The mitigating factors include, but are not limited to, the
following ((v), (vi), (vii) and (viii) apply to ES&H only).
(i)
Degree of control the Contractor had over the event or incident.
DE-AC05-00OR22725 Section I—Page 188 of 276